GASL: Nat Gas Bull 3 x Rltd Direxion
Monthly time frame:
- From the July 2011 high we have a 3-wave down leg, hence we can count the move as a Zig Zag (ABC)
- The December candlestick has a potential bottoming tail (With huge volume) that could mark the end of a downward move
- Obviously on December it ended extremely oversold
Weekly time frame:
- From the assumed wave (B) established on June 23 to the December 15 low we have a potential impulsive down sequence with the last down leg being a thrust following a Triangle, strengthening the odds that the assumed wave (C) has been completed
- In addition we have an Engulfing candlestick (Reversal pattern).
- Last week Hammer could have established a higher low.
- Notice the Slow Stochastic has triggered a buy signal coming from an extremely oversold reading
Daily time frame:
- Given the corrective look of the current pullback odds should favor at least a 3-wave up leg from the December 15 low
- The pullback could have formed a Bullish Flag
- If Friday's lod has concluded the correction the next up leg should have an extension target in the range of 6.06-7.36
- Therefore against last Friday's lod we have a long setup